Karla White of GFA Wealth Design provides information for individuals who are facing major financial changes in their lives including retirement, divorce, sale of a business, remarriage, large windfall/inheritance, terminal illness or the death of a spouse.

Gadget

Monday, September 30, 2013

I
think as parents we could all agree parenting is not always an easy job.

Some
things we just get right and some things we just don’t?

As
parent’s we can never be expected to know everything that our kids will need.

But
we do know how much planning is involved when it comes to planning for our
children’s future.

Planning
for the parents of children with special needs can often become an extremely
daunting task.

I
am sure a question they are always asking themselves is who is going to take
care of their special needs child when they are gone.

Special
Needs Trust planning is something where the parents should seek the advice of
an expert.

For
parents of children with disabilities or special needs it is vital for them to
have an effective estate plan, which puts them in control of their finances
while they are alive giving them the peace of mind that their children will be
taken care of in their absence.

A
Special Needs Trust helps ensure that the beneficiary receives the benefits in
the way the parents intended and protects them against losing access to the
government benefits, which can be affected by as little at $2000 if your child
was to receive this as inheritance directly.Which in most cases because of lack of knowledge in this area, leads
them to disinheriting their special needs child and they leave the money to
someone who they think they can count on to take care of their child.In most cases however this is not the best
answer.

Special
Needs trusts can be used to supplement and never replace the government
benefits that special needs children are entitled to.But parents need to be educated on any
restrictions that could affect the benefits their child receives.Special needs trusts should be created to
provide additional benefits while protecting the assets of the special need
child.

Creating
a Special Needs Trust ensures peace of mind as it allows the assets to be
managed by someone who has been previously chosen by the parents, because in
most cases they cannot be managed by the child on their own and can prevent the
assets from being wasted away.

Of
course estate planning in the case of special needs planning is no less of an
emotional roller-coaster than any other estate planning; it is always a
difficult process to go through.

But
it is very satisfying for the parents when they have done it, knowing that they
now have the peace of mind that their children will be taken care of by people
they have chosen and in the way that they have instructed when they no longer
can.Making this one of the most
important things a parent of a special needs child can do for them.

So
if you are the parent of a special needs child do not put it off, it is vitally
important that you make the choices for your child’s future and that you do not
leave it to chance.

Anyway
I am just too busy to take care of that right now, and I thought I was done
with all my ‘housekeeping’ chores when I opened my financial accounts.

Reviewing
my beneficiaries, it doesn’t seem like an urgent task anyway, my money will all
go to the right place in the end. Or
will it?

Reviewing
our beneficiaries is more important than we think.

Actually
it is something that should be considered a top priority on all your current
investments, insurance policies and financial accounts.

How
can this make that much of a difference, maybe the question you are asking
yourself?

Here
is why it needs to take top priority on our ‘to do list’.

Beneficiary Designation supersedes
one’s will.

If
your beneficiary information is not current, when you pass away your assets
will more than likely be distributed to an unintended heir?As the beneficiary that you have listed can
and does it most cases supersede even an up to date will.

Tax Related Benefits.

Not
naming a beneficiary or naming your estate can be as equally bad, as by doing this
you could be giving up some tax strategy rights as well as control.Having beneficiary designations can help
extend tax related benefits and reduce the tax burden on your beneficiaries.

Take the Time to Review your
Beneficiary Details.

Life
transitions can change everything for us.Recently been married, divorced, had a new baby or even a death in your
family since you originally opened your accounts or got that life insurance
policy?Well it is time to review and
get updated your beneficiary designations.By taking the time to do this you will be ensuring your wishes are
carried out and you will be preventing your loved ones from the added stress
that comes with the legal complications at your time of death if not done.

It
should not be one of those job’s you will get to later, call your advisor
today, don’t be in doubt make sure you take care of this vitally important
issue and give yourself the gift of peace of mind that your family will be
taken care of in the event of your death.

Karla White

About Karla

Karla White is an income planning specialist with GFA Wealth Design.
Karla offers Financial Security for all stages of life.
Karla knows that there is no pre packaged plan that suits all.
Whatever financial change you are facing whether the ones that you have planned for or even the ones that have taken you by complete surprise Karla knows that all of them can have life altering effects for each and every individual.
Investment Advisory Services offered through Global Financial Private Capital, LLC, an SEC Registered Investment Advisor.
Insurance Services offered through Waterstone Financial, LLC.